Request for Proposal (RFP)

A Request for Proposal (RFP) is the formal solicitation document used in Indian government procurement primarily for consultancy, intellectual services, and complex technical assignments. Unlike a Notice Inviting Tender (NIT) for goods or works, an RFP invites firms to explain how they will do the work and at what cost, with both dimensions evaluated.

What is an RFP in government procurement?

An RFP is used when the government is procuring advice, design, analytical work, or specialist services, areas where the quality of the approach matters alongside price. Common RFP-based assignments include Detailed Project Report (DPR) preparation, project management consultancy (PMC), architectural design, IT system design, policy studies, and transaction advisory for PPP projects.

The RFP document contains a Terms of Reference (TOR) defining the scope of the consultancy, a technical proposal format with specified sections and page limits, a financial proposal format, the evaluation criteria and their marks distribution, and the selection method. In Indian government practice, the dominant method is Quality and Cost Based Selection (QCBS), where technical quality is scored (typically on a 100-point scale) and a minimum qualifying score (usually 70-75) is required before the financial proposal is opened.

The financial score formula is: Financial Score = (Lowest Financial Proposal / Your Financial Proposal) x 100. The combined score is typically calculated as (Technical Score x 0.70) + (Financial Score x 0.30) for a 70:30 QCBS. The firm with the highest combined score wins.

RFPs for central government assignments are published on CPPP (eprocure.gov.in). Large infrastructure-linked consultancies from NHAI, NHIDCL, and major ministries also appear on their own portals. RFPs for state government assignments appear on GePNIC-powered state portals.

Why it matters for bidders

RFP procurement is where the quality of your written technical proposal genuinely affects outcomes, unlike L1 tenders where proposal quality is irrelevant once you pass the eligibility check. Firms must invest in well-structured methodology statements, credible work programs, and strong CV presentations for key personnel, these are scored individually and can separate firms by 10-15 points.

Personnel CVs are often the highest-weighted component (30-40%). Matching the right team to the evaluation criteria is a specific skill: the TOR will describe required qualifications and experience thresholds for each key position, and evaluators check each CV against those thresholds before awarding marks.

Financial proposals in QCBS should be competitive but not recklessly low, since the financial weight is typically only 20-30% of the total score. An overly low fee hurts the firm's ability to deploy quality resources and saves less evaluation weight than a strong technical score.

Example

A state government's urban development authority issues an RFP for a project management consultancy for a Rs 500 crore smart city infrastructure project. The TOR specifies a 70:30 QCBS. Three firms submit proposals. Firm A scores 82 on technical and quotes Rs 4.2 crore. Firm B scores 76 and quotes Rs 3.6 crore (the lowest financial proposal). Firm C scores 70 and quotes Rs 3.8 crore. Firm B's financial score is 100 (lowest quoter), while Firm A's financial score is (3.6/4.2) x 100 = 85.7. Combined: Firm A = (82 x 0.70) + (85.7 x 0.30) = 57.4 + 25.7 = 83.1. Firm B = (76 x 0.70) + (100 x 0.30) = 53.2 + 30 = 83.2. Firm B wins by a narrow margin.

Key rules / thresholds

• Minimum qualifying technical score is typically 70 out of 100. Financial proposals of firms below this threshold are returned unopened.
• QCBS ratios of 80:20 (heavily technical) are used for complex design or policy work; 70:30 is standard; 60:40 is used for more routine assignments.
• Quality Based Selection (QBS, price negotiated after ranking) and Least Cost Selection (LCS, lowest price among technically qualified firms) are alternatives to QCBS but less common.